Natural gas futures contract traded on the Multi Commodity Exchange (MCX) had plunged 10.5 per cent in the previous week to close at ₹139.5 per mmBtu. This week the contract has been moving sideways in the band between ₹137 and ₹148.

Traders with a short-term perspective should tread with caution. Consider initiating a fresh short position if the stock slips below the immediate support level of ₹137 with a stop-loss at ₹143.

The contract can decline to ₹132 or ₹130 initially and further decline below this base zone can drag it down to ₹125. But, a conclusive breakthrough of the resistance at ₹148 would have also breached the contract’s 21 and 50-day moving averages. In that case, the contract could alter the bearish outlook and witness an up move ₹157.

Strong break out of the resistance at ₹157 is needed to strengthen the up move and take the contract higher to ₹165.

MCX crude oil: After encountering a key resistance at ₹2,300/barrel in late January, the crude oil contract resumed its downtrend. The contract has failed to find support at ₹1,900 (mid-January low) and it has declined below this level to trade at ₹1,850 on Thursday.

Outlook is bearish for the contract. It can extend its decline and test support at ₹1,800 and ₹1,750 in the coming trading sessions. Significant resistances are at ₹2,050, ₹2,200 and ₹2,300.

Only a conclusive up move above ₹2,300 will determine that the near-term trend is shifting upwards.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading

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